Chapter 3 Vocabulary 1-22

Single producer market structure

Firm legally ceases to exist when an owner dies, quits, or new owner is added

Formal contract to repay borrowed money and interest at regular intervals

Check paid to stockholders representing corporate profits

Maya owns and operates her own business. This is an example of a(n)

All conditions of perfect competition except for identical products

Philosophy that government should not interfere with business

Producers fixing prices, limiting output, or dividing markets

Taxation allowing stockholder to be taxed as corporate profit and personal income

John and Terry both own a plumbing company together. This is an example of

Countries ability to produce a given product relatively more efficient than others

Few large sellers dominate and affect prices in the industry

Countries ability to produce more of a given product than another country

Owner is personally and fully responsible for all losses and debts

Market Classification according to number and size of firm, type of product, and type of competition

Business own and operated by a single person.

Business recognized by law as a separate, legal entity with all the rights and responsibilities

Court-granted permission to individual or business to cease and delay payment on debt

Government approval to establish a corporation

Suzie and Sammi own a salon together. Sammi has nothing to do with running the business. This is an example of

Stock of goods held in reserve

Market structure by a large number of well informed independent buyers and sellers who exchange identical products